Abstract  This article presents a new classification algorithm, called CLEF, which induces a -machine by constructing its own features based on the training data. The features can be viewed as defining subsets of the instance space, and they allow CLEF to create useful non-linear functions over the input variables. The algorithm is guaranteed to find a classifier that separates the training instances, if such a separation is possible. We compare CLEF empirically to several other classification algorithms, including a well-known decision tree inducer, an artificial neural network inducer, and a support vector machine inducer. Our results show that the CLEF-induced -machines and support vector machines have similar accuracy on the suite tested, and that both are significantly more accurate than the other classifiers produced. We argue that the classifiers produced by CLEF are easy to interpret, and hence may be preferred over support vector machines in certain circumstances.